# Use

The DDB function (a Financial function) calculates depreciation of an asset by using the Double Declining (DDB) Method or another method specified by the user.

# Syntax

DDB(cost, salvage, life, period, [factor])

The DDB function has the following arguments:

cost – Required. The cost to purchase or the initial cost of an asset.

salvage – Required. The remaining useful life the asset, when it is fully depreciated.

life – Required. The useful life of the asset.

period – Required. The period for which you want to calculate the depreciation.

[factor] – Optional. The rate of depreciation, if omitted, Excel will take 2 value as default. Which denotes the double declining method.

# Example

Suppose, you purchase a car for \$50,000/-, which will be depreciated over five years and it would have the salvage value of \$5,000/- when it will be five years old. By using the DDB function, the depreciation for the first year will be:

Result:

The depreciation for the 1st year is \$20,000/-, in a similar way, the depreciation for the remaining years will be calculated:

# Similar Functions

DB function calculates depreciation of an asset by using the fixed-declining balance method over the useful life of the asset.

SLN function uses the straight-line depreciation method to find out the depreciation of an asset for one period.

SYD function is a Financial function, which returns the sum-of-years’ digits depreciation of an asset for a specific period.

VDB function calculates the depreciation of an asset, for a specified given period, by using any selected depreciation method, such as the double declining balance method etc.

AMORLINC function calculates depreciation of an asset, on a prorated basis, for a specified accounting period.

AMORDEGRC Function returns the depreciation of an asset for each accounting period till a useful life of an asset.

# Function Errors

 Errors Occur if #NUM! The supplied cost or salvage <0. The supplied life, period or [factor] ≤ 0. The supplied [month]  ≤ 0 or > 12. The supplied period > life. #VALUE! The supplied arguments are non-numeric.